Most Common Errors on a Clergy Tax Return

1. Used incorrect W2 income when figuring tax amount
   
2. Not reporting nonacccountable reimbursment plans as taxable income
   
3. Not reporting the personal use of a church-provided car as taxable income
4. Reporting income incorrectly on W-2
5. Omitted adjustment of one-half of self-employment tax
6. Calculating clergy earned income incorrectly
7. Failure to report special occasion gifts as taxable income
8. Not reporting social security allowance as taxable income
9. Excluding the fair rental value of the church parsonage from social security income
10. Administer professional reimbursement plans incorrectly
11. Reported self-employment income incorrectly
12. Reporting income as a self-employed on Schedule C
13. Withholding social security tax as an employee
14. Not applying IRC 265 (Deason rule) on an individual tax return
15. Self-employed ministers claiming exclusions only available to employees
16. Claiming the housing allowance exclusion when calculating SE taxes
17. "Ineligible" ministers exempting themselves from social security
18. Not including parsonage allowance, fair rental value, or utilities in SE income
19. Not reporting income associated with "below market interest loans"
20. Not reporting a church's reimbursement of a spouse's travel expenses as taxable income
21. Not claiming a parsonage allowance
22. Not deducting unreimbursed and nonaccountable reimbursed expenses on Sch. SE
23. Inadequate record keeping
24. Not reporting honorariums expenses correctly